Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life.
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Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $60,500.
Required: If the relevant tax rate is 34 percent, what is the after tax cash flow from the sale of this asset? (Do not round your intermediate calculations.)
a. $903,882.00.
b. $39,930.00.
c. $149,919.00.
d. $142,780.00.
e. $135,641.00.
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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